Inside: Dairy Market
Price of heifers: no phosphate rights yet
The start of 2018 is quickly approaching. It is still not clear whether there will be a derogation for the application standards for nitrogen and whether the system of phosphate rights will be introduced. It is not an obstacle to the demand for heifers and the price of broiler cows is also indicative of the current milking climate. Every drop counts.
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Minister Henk Kamp (Economic Affairs) signaled another increase of 10.000 LSU in mid-October. Encouraged by the better milk price, but also out of dire necessity, the import of heifers, mainly from Germany, is increasing. Sources in the livestock trade indicate that many heifers were imported from Germany, especially in the period from mid-August to mid-September.
2.000
euro
Demand is decreasing
However, demand has started to decrease in recent days. The high price is mainly mentioned as a reason, but more supply from Dutch dairy farmers is also observed. On average, the price was between €1.800 and €2.000.
Not only is the demand for heifers at its peak, the price of cows for slaughter also appears to have reached its peak. It should be noted that 2017 is once again proving to be a special year, because prices are at their lowest point around this period. Vee and Logistiek Nederland presented the prize slaughter cows U at €4,05 to €4,80 per kilo to €2,40 to €2,75 for slaughter cows P.
Slight increase in the number of slaughters
In week 41, the number of slaughters increased to 13.491 cows, which means that slightly more cows were slaughtered than in the same week 1 year earlier. The forecast is that many more cattle will become available in January. This is due to the 8,3% discount and the possible increase in stoppers. Something that the trade is not looking forward to, because January is a quiet period in terms of demand for both slaughter cows and export cows.
Too expensive for England
In the meantime, there is hardly any export of short-pregnancy heifers. For example, the animals are considered too expensive for the British market. The price indication is set at €1.050. The exchange rate of the pound may play a role in this, but another trader points to the milk price. This is visibly higher in the Netherlands than in England.
In the short term, it is especially exciting what October 31 will bring. Will the dairy farmers be successful in the appeal or will the state win? If the state wins, there could be a large supply of livestock. In the other scenario it is realistic to take into account a higher demand for heifers.